This is the next post in my series on why I am investing in Cincinnati real estate. My last article discussed why I have chosen to invest in Cincinnati properties. My decision is based on the potential ROI in our area as well as future opportunity. In this article I will discuss the current state of our local market as well as demographic trends which impact both our economy and investors. Contact me today to speak with a real estate agent if you are considering purchasing property in our area.
Cincinnati homes are selling rapidly and rents are rising
Cincinnati had the fastest-selling housing market in the country for June of 2021[1]. Houses were on the market for an average of only nine days, compared to 24 days for the national average – this is 58 percent shorter of a timeframe than the same time a year ago. This growth in demand is being attributed to individuals relocating for work or companies determining that employees may function remotely, giving many individuals the opportunity to move to any location they please. In addition to those moving to the city in general, some are choosing to move to trendy areas in the city such as Over The Rhine.
Parallel to houses selling quickly, rents are also rising in our area. It’s being reported that Cincinnati is seeing its sixth largest year-over-year increase for rental prices. In June of 2021, the median rent was approximately $1,200, which was a 17 percent jump from the summer of 2020.[2] Because of this high activity and growth, many were expecting the housing market in Cincinnati to wane, but August actually continued to break records with the volume of houses sold.[3] I personally believe the city is in a “boom” phase, which is why I have begun to purchase property here.
I personally believe Cincinnati’s current real estate trends will continue as the city has reversed its population decline and has begun to attract younger people
One reason that I believe that Cincinnati will continue to have an active and favorable market for investors is the demographics in the area. For background information, Cincinnati’s population had been declining steadily since the 1950 census. Then, in 2020, the population of Cincinnati saw an increase. This is a significant sign that the tides of population are turning in the area. In fact, the growth spurt is producing a net new increase of 33 people per day in the metro area[4].
Part of this increase has to do with the Gen Z population. As that population continues to age into the workforce, many of those in the younger generations are migrating to the Cincinnati area. Cincinnati is currently ranking number ten in the top fifty metropolitan areas for Gen Zers[5]. Additionally, US News & World Report named Cincinnati the top place to live in Ohio and 44th in the United States[6]. Seeing this population growth is encouraging for investors – knowing that with continued job opportunities and continued population growth, the real estate market can continue to be strengthened.
I am investing in Cincinnati real estate because I believe economic growth will spur long-term growth
I believe that Cincinnati’s strong real estate market, discussed above, will continue to be strengthened by the economy in the area. Chiefly, the booming e-commerce, distribution, and technology industries have been expanding rapidly in our city. This is largely due to Cincinnati’s geographic location near major interstates and airports. An example of this includes Amazon’s August 2021 opening of a $1.5 billion air hub in the area. CNBC describes this hub as “the central nerve of Amazon’s U.S. air cargo operations.” It is estimated that the hub will create roughly 2,000 jobs on its own.[7] This, combined with other companies expanding and younger generations populating the area, the region may fill up with young families and working adults, adding to the desire for housing.
With more job opportunities and more people moving to the area to fill those roles, it is my belief that Cincinnati will continue to see a high demand for housing. I believe that the housing market boom that we are seeing in the area will likely not cool, for the foreseeable future, in the way that some are predicting. I feel that the city is still and will continue to be favorable to those who want to invest in properties.
I am dedicated to helping those who are looking for investment properties in the Cincinnati area. If you need assistance then contact me today to speak with a realtor. I am an investor myself and have the knowledge necessary to help you navigate the process and can answer questions related to selecting a quality property. I look forward to speaking with you.
In addition to Cincinnati, I also assist with properties in Fairfield, Springdale, Sharonville, West Chester, Hamilton, Monroe, and Middletown.
Note & Disclaimer: Nothing in this article, or on this website, should be construed as investment or financial advice. The opinions shared on this website are the personal, and not professional, opinion of the author and are not associated with Keller Williams Advisors. Any investment decisions should be made after consulting with a certified financial/investment professional.
[1] Cincinnati has nation’s fastest-selling housing market – accessed at https://www.fox19.com/2021/07/19/cincinnati-was-nations-fastest-selling-housing-market-june/
[2] See reference no. 1
[3] So much for Cincinnati’s housing market cooling, as August volume smashes records – accessed at https://www.bizjournals.com/cincinnati/news/2021/09/15/august-home-sales-volume-smashes-record.html
[4] Census 2020: Cincy in a growth spurt; region gains 33 people every day – accessed at https://www.fox19.com/2021/08/12/census-2020-cincy-growth-spurt-region-gains-33-people-every-day/
[5] Cincinnati ranks among top U.S. metros – No. 1 in Ohio – for Gen Zers – accessed at https://www.bizjournals.com/cincinnati/news/2021/07/16/cincinnati-ranks-among-top-metros-no1-in-ohio-for.html
[6] Queen City crowned Ohio’s best place to live – accessed at https://www.bizjournals.com/cincinnati/news/2021/07/13/cincinnati-ranks-best-places.html
[7] Amazon opens its $1.5 billion air hub in Kentucky in latest push to speed deliveries – accessed at https://www.cnbc.com/2021/08/11/amazon-opens-1point5-billion-kentucky-air-hub-in-bid-to-speed-deliveries.html